In the 4.0 era, in order to remain competitive, companies in all industries must change to adapt to the dynamic market. How to optimize resources, develop, and create sustainable values is one of the challenges Vietnamese businesses are currently facing. Growth based on cheap labor is obsolete, so corporations in Vietnam need to apply new technologies to meet the market requirements.
The 4.0 Era is changing the way companies manage, operate, and develop. Therefore, it entails the need to develop human resource management in the near future. The relationship between employers and employees has taken a significant leap, demanding business owners to change their way they manage their personnel in order to attract talents and create value for the company.
Here are 3 new trends in HR management in the 4.0 era
Manage by KPIs
Instead of managing employees through working hours and timekeeper, companies gradually shifted to performance management based on Competency and KPI rating systems. These approaches will offer many advantages to both employees and employers:
- The goals and the job requirements are clearly stated
- Evaluation criteria are based on measurable criteria
- Competency assessments are objective and non-emotional
- Performance and reward policies are fair and transparent
- Better understanding and communication between managers and staff
The company’s short-term and long-term goals will be easily achieved once both the companies and their employees clearly see their role in the business. Management by KPIs has contributed to increasing productivity and positive changes in corporate value.
Non-distance between employer and employee
In this dynamic economy, companies with complicated structures with many levels will gradually be replaced by companies with a flat organizational structure. Therefore, nowadays, many companies have begun to adopt this structure to remove the boundaries of traditional management and to empower employees who are potential leaders to promote organizational change in the new era.
HR digitization
Nowadays, organizations require agility, quick responses to keep up with the “digitalization trend” and to meet those criteria. They have to start applying technology to human management. It means that businesses need a digital workspace to change the way they work and connect with each other, moving beyond the traditional frameworks. With the development of technology, organizations nowadays can easily access and apply management software as well as manage their personnel remotely.
The days when employees were merely employees are gone, now employees are considered to be strategic partners of the company. The human factor is extremely important, so companies need to build corporate culture as well as invest in their staff in order to pursue long-term development.
